It could be a bad day for bonds – SocGen

Markets are twiddling their thumbs ahead of the US labour market data. Kit Juckes, Chief Global, FX Strategist at Société Générale, the outlook for bonds and the Dollar. 

Hard, soft, or no landing at all?

The ADP report, which barely correlates at all with the official data on a month-to-month basis, came in weak and that may mean the soft consensus is a little lower than the 160K NFP increase that forecasters are looking for. 

I have a bias to think it could be a bad day for bonds, with US politics, debt supply, and strong payrolls all potentially supporting the Dollar as we look ahead to next week’s auctions and CPI data; but I’m biased because I’ve caught, and a cold and it’s darkened my mood! 

See – NFP Preview: Forecasts from seven major banks, losing momentum